Bush's request to open ports OK'd

WASHINGTON (CBS.MW) -- A federal judge on Tuesday approved President Bush's request to order the reopening of 29 West Coast ports, temporarily halting a costly 10-day labor lockout.

Under the Taft-Hartley Act, Judge William Alsup ordered the ports reopened immediately and scheduled a hearing in 10 days on whether to impose a full 80-day cooling-off period. The reopening should allow the movement of vital goods, including imports destined for store shelves, during the holiday shopping period.

Ports were expected to reopen Wednesday evening, and it could take weeks to clear the backlog of ships waiting to unload. See full story.

"The crisis in our western ports is hurting the economy, it is hurting the security of our country, and the federal government must act," Bush said earlier as he ordered Attorney General John Ashcroft to seek an injunction from the federal court in San Francisco. Watch Bush's statement.

It was the first request to use the Taft-Hartley Act's emergency powers since 1978. It's the first time in the 56-year history of the law that it's been used against a lockout by management, rather than a strike by workers. Read more about the act.

Just before Bush spoke, the International Longshore and Warehouse Union offered to return to the docks on Wednesday under a 30-day extension of its contract, in an attempt to avoid the Taft-Hartley injunction.

Union sources said the shippers had rejected the offer. Representatives of the Pacific Maritime Association were not available for comment.

The shippers ordered the lockout after the workers began a slowdown to protest unsafe conditions.

Business interests cheered Bush's decision. They said the work stoppage was costing the economy as much as $2 billion a day and threatened to stall the weak economic recovery.

Retailers, who operate with lean inventories, were among the first to feel the pinch.

"This is about more than labor unions and port operators," said Tracy Mullin, president of the National Retail Federation. "This is about whether American children will find presents under the tree on Christmas morning.

Manufacturers have also begun to run short of vital components. The Mitsubishi Motors assembly plant in Illinois said it was running out of engines and transmissions and would have to close on Wednesday.

The "potential for damage to the rest of the economy is just too great to ignore," said Jerry Jasinowski, president of the National Association of Manufacturers.

Farmers and other exporters were also affected by the 11-day-old lockout.

The longshore union and other labor organizations denounced the federal intervention, complaining that Bush was siding with the Pacific Maritime Association, which represents the shippers along the West Coast.

"They can get Bush to accomplish what they cannot achieve at the bargaining table," said Max Vekich, a union member from Aberdeen, Wash., at a congressional hearing Tuesday.

On Monday, Bush ordered a board of inquiry to examine the impact of the lockout on the economy and to judge the prospects for a settlement, saying the impasse would "imperil the national health and safety" if it continued. Read Bush's statement.

On Tuesday, the board, led by former Sen. William Brock, reported back to Bush that there was little hope of a settlement any time soon. Read the report.

"I believe without federal intervention an agreement would have been reached," Vekich said. "Presidential interference only adds to the heat of the argument."

Presidents have been reluctant to invoke the Taft-Hartley Act, in part because the cooling-off period doesn't seem to work to bring the two sides together. Organized labor has always opposed the Taft-Hartley Act, saying work stoppages are often the only thing that can actually force an agreement.

Bush has been under increasing criticism for his hands-off approach to the economy. By seeking the injunction, Bush displayed his resolve to deal with economic problems even as he moves forward on war preparations.

The labor dispute centers around technological changes the shippers say would boost productivity. The union said it had agreed on Sunday to allow the shippers to introduce the labor-saving technology as long as the jobs were reserved for union members.

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